Question

What distinguishes Traditional With Profits Endowments?

a.

They do not pay any annual bonuses.

b.

The sum assured is guaranteed to decrease.

c.

Annual bonuses are added based on investment performance.

d.

Terminal bonuses are guaranteed at maturity.

Posted under IC 89 Management Accounting

Answer: (c).Annual bonuses are added based on investment performance. Explanation:Under Traditional With Profits Endowments, the sum assured guaranteed to be paid is increased based on investment performance through the addition of annual bonuses.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What distinguishes Traditional With Profits Endowments?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What defines Unit-linked Endowment Plans?

View solution

Q. What characterizes a Full Endowment Plan?

View solution

Q. What is the characteristic of a Pure Endowment policy?

View solution

Q. What distinguishes Group Insurance from individual insurance?

View solution

Q. What is a characteristic of Group (Term) Insurance Scheme?

View solution

Q. What does Group (Term) Insurance Scheme cover?

View solution

Q. How is the premium charged in a Group (Term) Insurance Scheme?

View solution

Q. What are examples of add-ons or riders in Group Term Insurance schemes?

View solution

Q. What is the statutory basis for Gratuity payments in India?

View solution

Q. When is an employee eligible for gratuity under the Payments of Gratuity Act, 1972?

View solution

Q. How is Gratuity Liability typically managed by employers?

View solution

Q. What type of Gratuity Insurance Plan do life insurance companies offer to employers?

View solution

Q. How is the rate of interest in a Gratuity Insurance Plan typically structured?

View solution

Q. What does ULIP stand for?

View solution

Q. How is the structure of ULIP similar to that of a mutual fund?

View solution

Q. What are the investment options available in ULIPs?

View solution

Q. What does NAV stand for in the context of ULIPs?

View solution

Q. How is the premium allocated in ULIPs?

View solution

Q. What does IRDA stand for?

View solution

Q. What is the key observation regarding life insurance business from the latest data published by IRDA?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Enzyme Technology

Unlock the power of enzymes with our Enzyme Technology category. Explore enzyme...

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....

Foundation Engineering

Master the principles of Foundation Engineering with our specialized category....

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Tissue Engineering

Delve into the cutting-edge field of Tissue Engineering with our specialized...

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Power Plant Engineering

Embark on a journey through the fascinating domain of Power Plant Engineering, where...

Waste Water Engineering

Navigate the challenges of wastewater treatment and management with our Waste Water...